Markets had a wild run on easy optimism, but that honeymoon phase is clearly winding down. The stock market rally fueled by Fed expectations and AI hype is losing steam, and investors need to recalibrate.

Here's the thing though: this doesn't mean a crash. Instead, we're likely looking at a slower, grittier climb higher. Think steady consolidation with periodic pullbacks rather than the straight-line up we've seen lately.

What does this mean for you? The days of passive "buy everything" strategies are numbered. Selective positioning, better risk management, and patience become critical. Markets that have already priced in the bull case will struggle. Meanwhile, contrarian plays and undervalued sectors could start looking attractive again.

For crypto traders and investors, this shift matters big time. Risk-on sentiment typically drives altcoin rallies, but when traditional markets lose momentum, correlation dynamics shift. Bitcoin and Ethereum often become safe havens, while speculative tokens face headwinds.

The grind higher is possible, but it'll require more work to extract gains. That's actually healthy—it separates conviction from complacency.